• By Vaamanaa Sethi
  • Tue, 12 Sep 2023 01:31 PM (IST)
  • Source:JND
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Union Minister Nitin Gadkari on Tuesday, September 12, warned car manufacturers against increasing production of diesel vehicles and said he will otherwise urge the Finance Minister Nirmala Sithraman to impose an additional 10 per cent GST on diesel engines. The minister was speaking at the 63rd Annual Society of Indian Automobile Manufacturers annual convention in New Delhi.

The Road Transport and Highways Minister said the production of diesel vehicle has come down to 18 per cent as compared to 52 per cent in 2014. However, he firmly stated that diesel vehicles should not increase now that the automobile industry is growing. "You make decisions at your level so that diesel (vehicle) is reduced. If it wouldn't happen, then I would recommend to the Finance Minister that diesel is creating a lot of pollution so a 10 per cent additional tax should be levied on it," he said.

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He warned the automobile companies, saying, "I have already drafted a letter and I am meeting the FM this evening, will increase taxes to such an extent that it will become difficult to sell diesel vehicles."

The minister also underscored the increasing emphasis on biofuels and alternative fuels, highlighting their top priority status as India became a member of the Global Biofuels Alliance during the G20 Summit.

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"India imports 89 per cent of crude oil, which is a significant challenge. Therefore, PM Modi has given the highest priority to alternate and biofuels," he added.

Gadkari further questioned the auto industry why buses and trucks can't run on ethanol and complimented the industry for increasing its focus on alternate fuels and EVs.

The minister later clarified his comments, saying that no such proposal to levy additional 10 per cent GST on sale of diesel vehicles was "under active consideration".

"There is an urgent need to clarify media reports suggesting an additional 10 per cent GST on the sale of diesel vehicles. It is essential to clarify that there is no such proposal currently under active consideration by the government. In line with our commitments to achieve Carbon Net Zero by 2070 and to reduce air pollution levels caused by hazardous fuels like diesel, as well as the rapid growth in automobile sales, it is imperative to actively embrace cleaner and greener alternative fuels. These fuels should be import substitutes, cost-effective, indigenous, and pollution-free," Gadkari posted on X, formerly known as Twitter.